That last exercise seems to run afoul of some value-related heuristics. Price is so common a proxy for utility that imagining that you paid a penny for the option on eBay might irrationally devalue whatever you’re looking at.
Of course, looking at the contrast might still give you some useful insights—provided you can untangle them.
That last exercise seems to run afoul of some value-related heuristics. Price is so common a proxy for utility that imagining that you paid a penny for the option on eBay might irrationally devalue whatever you’re looking at.
Of course, looking at the contrast might still give you some useful insights—provided you can untangle them.